The year 1879 marks the genesis of Eureka
Springs. Situated eight miles from the southern Missouri border on
Leatherwood Creek, a branch of the White River, this isolated area in
the Northwest Arkansas Ozark Mountains became one of the more popular
health centers in the United States. Visitors were attracted by the
number of mineral water springs, believed to have therapeutic value for
many of the prevalent diseases. The springs medicinal qualities were
discovered by Dr. Alvah Jackson in 1858. Apparently Dr. Jackson did not
reveal the source of his famous "Dr. Jackson's Eye water" until 1879. In
that year the doctor advised his good friend, Judge L. B. Saunders of
Berryville, to try the springs as a final attempt in curing a bad case
of erysipelas, a skin disease that caused extended inflammation. The
positive results gained from the springs prompted Saunders to spread the
word of the medicinal qualities of the water in and around the area
later named Eureka Springs.

Eureka Springs became a resort almost
overnight. Along with this popularity came a hodgepodge of private and
commercial housing, much of it tents, shanties and lean-tos. The majority
of the structures were hastily built for immediate occupancy rather than
stability, to secure lots as close to the springs as possible. Thus the
concentration of settlement developed around the various springs in the
area. Unlike the development of building patterns in most towns, where
the most desirable living areas were on the higher elevations, property
values were based on the proximity to the springs. Consequently the
wealthier segment of the town's population settled in the lower areas
nearest the springs while the less wealthy population lived in the
higher area, farther from the springs.

The economy of Eureka Springs developed
around the springs. The springs brought in tourists as well as people
with health afflictions with the result that profitable business of
hotels, saloons, bathhouses, dry goods stores, groceries and liveries
sprang up. The attraction of the springs also brought the investors and
the railroad. During this time the Eureka Improvement Company had a
major influence on the development of Eureka Springs and its built
environment. The company, organized in 1882 by former Arkansas governor
Powell Clayton and other enterprising investors, reflects Eureka
Springs' most illustrious period, the "era of big promoters". These men
invested heavily in the development and promotion of Eureka Springs as a
health center and a retirement place for the wealthy. During this era,
1880 - 1890, Eureka Springs reached its peak in popularity, wealth and
gracious living.

The Eureka Improvement Company can be
credited with at least two major contributions to the development of the
town as a popular resort. The first was funding and constructing the
Eureka Springs Railroad. In 1880 the nearest railroad terminal was the
St. Louis and San Francisco Railroad depot in Pierce City, Missouri, 55
miles from Eureka Springs. The people coming to the springs had to
depend on a nine hour coach ride from Pierce City to complete the trip.
The following year the railroad line reached Seligman, Missouri, only 20
miles from the resort area. Seeing the need for a railroad line into
Eureka Springs, the Eureka Improvement Company began promoting and
planning for what became the Eureka Springs Railroad. Completed in 1882,
the railroad brought great prosperity to the town not only in the health
trade but in the commercial industry as well. The railroad terminal was
the nearest depot for the isolated counties to the east and southeast.
Therefore, Eureka Springs became an important commercial center for the
area. Another benefit, in connection with the railroad was the
establishment of a St. Louis and San Francisco Railroad shop. The
benefits of the railroad and its running of as many as six trains a day
seemed to assure the future economic success of the town.

The second contribution of the Eureka
Improvement Company was the company's activities and participation with
the city council in improving the living environment of Eureka Springs.
Most of the early housing was poorly constructed with no stone or cement
foundations. These structures were supported by wood piers. Four major
fires swept through various parts of the community, and the condemnation
and demolition of the structures in the 1890's destroyed many of the
early frame structures that represented the founding and early growth of
Eureka Springs. Through investment in the town, the Eureka Improvement
Company encouraged and erected more substantial buildings. Brick and
stone, particularly limestone, sandstone, granite and marble quarried
from the surrounding vicinity, were now included in the construction
fabric. The company also encouraged the widening of the streets, the
installation of street lights, water and sewage systems and wooden
sidewalks. Granite and limestone walls were used to terrace the
hillsides for construction and landscaping.

By the turn of the century, Eureka Springs
stood at its apex of prosperity. However with the coming of the
twentieth century the economic future of the town began to decline
gradually. A new positive attitude was forming toward science and its
discoveries in the field of medicine. As society gained more confidence
in modern medicine, the faith in the curative power of the mineral
springs diminished as seen in the decline of Eureka Springs as well as
other resort areas in the country. The railroad also dealt a blow to the
local economy. In 1911 the St. Louis and North Arkansas Railroad
connected Eureka Springs with Harrison to the east, lessening the town's
importance as a commercial center. Thirteen years later, the railroad
moved its shops out of Eureka Springs and transferred them to Harrison.

However with the advent of the car, Eureka
Springs was able to survive by promoting its recreational attractions
along with its well known springs. In the 1920's auto tourism developed
as a principle source of revenue for the local economy. The depression
took a heavy toll on the town's built environment. Buildings were
abandoned or torn down to sell the wood. Vacant lots became more common.
But hard times also proved beneficial to Eureka Springs. The nation
began to develop a nostalgia for what was perceived as a happier and
more successful time, the turn of the century. The arts began to use
country themes in order to identify a more wholesome type of life.
Eureka Springs offered such an environment for artists and writers as
well as a less expensive and simpler lifestyle. After World War II
Eureka Springs continued to attract artists and writers. In the 1960s
Beaver Lake was built, bringing recreational opportunities to the area.
At this time the Great Passion Play and Christ of the Ozarks statue were
also created as another attraction.

In 1970 the entire town was placed on the
National Register of Historic Places. The Centennial Year of 1979 was
the beginning of the on-going efforts to restore Eureka Springs to a
desirable visitor destination as well as a great place to live. In 1978
local legislation was passed to create the Eureka Springs Historic
District Commission which oversees all exterior alterations to built
structures with the goal of preserving the architectural integrity of
each era of the town's history for future generations.